Sure, It's the same as what insurance agents do, you pay quarterly taxes. It's the same as how we do our taxes. All or (should I say they should) LCO's pay taxes every quarter, so we have everything on the employees and they pay their taxes the same time we do. It makes it a lot easier.

Think of this: this is just for laborers, not leads or managers.
But the average crew member makes $10-12/hr now you work the intire year and have to pay taxes on all $20,800. Now thats a hit you don't want to pay in April if you don't have to.

So the employee pays his taxes on the $4800 he made the firsst, second, third and forth quarter.

There is now way that the average laborer that anyone has hired will save enough $$ to pay their taxes for an entire year. So this makes it easier for them.

Spend a few dollars and investigate the difference between a Limited Liability Company and Incorporation. LLC limits your personal exposure to the initial investment to the business. (Make sure you are very specific regarding your initial investment in the business and any money that you as the owner may loan the business. Investment can be taken via lawsuit, loans made to the business can not. Honestly now a days, you accidently hurt someone and it is bad 1Mil is not going to cover you.

Also, an LLC offers you a beneficial tax treatment that SP can ot (owner withdrawls vs. profit). A good visit to an atty could be the best $150 you spend.

Full Disclosure: I am not an atty, this is my honest opinion. I am structured as a LLC in the State of Ohio.